Selling a House Now can be Bountiful or Challenging
We all thought that the real estate market last year was going to be a train wreck. The impact of COVID was sure to devastate the real estate market. Complete opposite. The 2020 year for real estate was unprecedented. And, so far, 2021 shows the same trend. Home sales are still aggressive across the country. So, if you are selling your house is it an opportunity or a necessity? That is an important question in this market because depending on your scenario this could be a windfall or it could just feel like another setback.
You own your house. No mortgage. Free and clear. No major maintenance or defects on your home. Updated in the last ten years (okay, so maybe you have a small HELOC to pay off) and it is move-in ready. Awesome. Sounds like the perfect house to sell. Quick, contact your local realtor and get a market analysis done so you can find out what exactly your house could sell for.
You have a mortgage. House is in decent condition, but it needs some updating. Things are functional but there are some issues with older pipes, aged roof, older windows, beat up floors and cabinets that need repairs. Okay, not going to appeal to the larger possible pool of buyers, but there is always a buyer for a house. Just has to be priced correctly.
The Upside and the Downside
Here’s the challenge for both sellers. What are they going to buy? Where are they buying? What is their situation for being able to purchase? The first seller with the move-in ready house to sell hasn’t been able to return to work due to COVID. Or the income just isn’t stable enough yet. Getting a loan is going to be next to impossible due to lender requirements. So while the house is an easy sell, the challenge is going to be what to buy. And with a seller favorable market, buying has become a challenge for even the most ready, well-qualified buyers. Oddly, it might be better suited for this seller to sit it out and sell later when they will be in a better position to purchase.
But for seller number two it is the opposite. They don’t have the cash, time or energy for the improvements. Selling has become a necessity because of job changes. Fortunately, this seller didn’t suffer (much) from the 2020 economic impacts of COVID, but they didn’t refinance the house – to make those repairs – because of a pending job change and need to relocate. So, now they need to sell and move their family – but the house is not what buyers are seeking. Chances are, they will sell the house below the market (opportunity) value and will have just enough to handle the move, closing costs and down payment on a new house. Or, simply have to rent for a period.
A Checklist for (thinking about) Selling a House
- Will selling your house leave you with proceeds to cover a new purchase (down payment, closing costs, moving costs, inspections, etc)?
- Are you in a market that is moving faster than others?
- Is your home a “move-in” ready or are you selling it in “as-is” condition?
- Are you sure that you will be able to find what you need should your house go under contract in just days or a couple of weeks?
Selling a House can be like Comparing Apples and Oranges
No two homes are the same. Maybe they look alike and can be comparably appraised, but the ownership is always unique. Determining whether or not to sell goes beyond the home condition or buyer appeal. For anyone selling a home, the most important question to answer – before finding a buyer for it – is where and what will be the next home? At GLG Homes, we run into sellers every week who are struggling. Some are simply struggling with a decision of how to sell. Others are challenged by what happens if they do, or don’t, sell the house.
Considering Selling a House – Want to Explore Your Options?
We believe that anyone selling a house have access to resources to openly discuss and ask questions about all their options to sell a house. And without feeling the obligation to do something with that resource. GLG Homes is such a resource. We started our business with an underlying commitment to always provide, and fully explain, the options. No one should feel backed into a corner with only one way out. There is always more than one solution to a situation.
Give us a call (or text) at 203-486-8868. You can also email [email protected] and start understanding the options to your situation.